Ensco (ESV) opened at $58.28 on Monday, March 19. The stock closed at $54.51 in after hours trading on Friday, March 23. This gives the stock a loss of $3.77 or 6.47% over the week. The stock opened at $56.99 on March 5. The stock thus had a three-week loss of $2.48 or 4.35% over the period. Ensco also went ex-dividend during the three week period. The company will be paying a dividend of $0.375 per share to investors who held the stock on the March 12 ex-dividend date. If we back that out of the period loss, Ensco shareholders experienced a gross loss of $2.105 or 3.69% over the three-week period.

Going places
Flotek recently completed the expansion of its chemical processing facility in Oklahoma. The expansion will not only boost production, but it will also lift bulk storage and blending tank capacities considerably. What’s impressive is that Flotek has also purchased land near the unit to expand storage facilities further as necessary.
Flotek isn’t focusing on domestic expansion alone. It will start shipping chemicals to Russia in a few weeks. This is a smart move simply because Russia is the largest oil producer in the world, and ExxonMobil (NYSE: XOM ) and other oil giants have a foothold even in the remotest areas of Russia. Flotek’s products are also making their way into the Middle East and Latin American markets.

For SandRidge’s Tom Ward, that pipeline is important. It allows the United States to use oil produced in North America, and not overseas, he said. Plus, if it isn’t transported to the U.S., it will go elsewhere.
“The Canadian oil has to go someplace,” he said. “That oil, if it doesn’t come to Cushing, will go to Asia or some other place. And we might as well be using it here.”
The southern leg of the pipeline, in the meantime, will help transport backlogged oil to the south. And according to Ward, there is more oil to come. Oil production in the U.S. has increased in the last three years from 5 million barrels a day to nearly 6 million barrels a day, he said.
“That’s just the beginning,” he said. “Our company alone grew our production last year by 64 percent.”

Regency facts
Headquarters (founded) Dallas (2003)
Market Cap $3.9 billion
Industry Oil and gas storage and transportation
Trailing-12-Month Revenue $1.5 billion
Management CEO Michael Bradley (since 2010)
CFO Thomas Long (since 2010)
Return on Equity (average, past 3 years) 4.5%
Cash/Debt $990,000 / $1.7 billion
Dividend Yield 7.5%
Competitors Atlas Pipeline Partners
Boardwalk Pipeline Partners
Chesapeake Midstream Partners

The recent run was just icing on the cake for investors, as Clean Enegy has jumped more than 150% since its low in October at $9.02. The rock-bottom prices for natural gas (a diesel gallon equivalent of Compressed Natural Gas costs just $2.36) have caused a surge in other natural gas plays like Westport Innovations (Nasdaq: WPRT ) , which has nearly doubled in the last four months. Westport designs natural gas engines for industry heavyweights including Ford (NYSE: F ) and Cummins (NYSE: CMI ) .

The network effect
Every additional contract that Clean Energy signs is good news for others in the natural gas fueling industry. With natural gas prices sufficiently lower than those of gasoline, the argument for the alternative fuel is clear. It’s cleaner, producing up to 30% fewer greenhouse emissions than gasoline and diesel, and it comes from an abundant source — with a projected 120-year supply just in North America.

Chevron’s Brazilian oil spill, tiny in comparison to major spills like BP’s Macondo well in the Gulf of Mexico in 2010, has cost the company dearly. It was forced this week to close off its Frade field well in the Campos Basin, 230 miles (370 km) off the coast of Rio de Janeiro. It has to deactivate its drilling platform. In short, Chevron now has one foot out of Brazil and it just might cost them $2.5 billion — which is what the company spent on their Brazilian oil venture.

Mathematically, a share price, HAL, (we use a monthly closing price adjusted for dividends and splits) can be approximated by a linear function of the lagged difference between the core and headline CPI:

HAL = 42 – 3.5dCPI(t+t1) (1)

where dCPI(t+t1)=CC(t+t1)-C(t+t1), t is the elapsed time, and t1=0 year is the time delay between the share and the CPI change. In the original model, the CPI difference had no time lag behind the share price, t1=0, and we covered the period between 1999 and 2009. The upper panel of Figure 1 shows the original model performance between July 2003 and February 2012, with the standard model error of $4.51.

Tesoro’s shares are up nearly 16% in the past 12 months. The company’s consensus target price is $30.77 and the shares are trading today at $26.64, for an implied gain of 15.5%. Since the beginning of the year, Tesoro’s shares have gained 14%

Marathon’s shares have risen by more than 7% in the past 12 months. The company’s consensus target price is $51 and the shares are trading today at $41.85, yielding a potential upside of almost 22%. Marathon gets about 70% of its crude from the US and Canada, which is undoubtedly the reason its shares have jumped nearly 26% since the beginning of the year.

1) Halliburton Company is poised to benefit from the rising global demand in energy because it provides critical products and services to the oil and gas sector. Halliburton is cashing in on the shale boom in North America, and the worldwide increase in deepwater drilling.
2) This company recently reported record results. Revenues for 2011, came in at $24.8 billion which was an increase of 38% from 2010. Net income for 2011, was $3 billion, or $3.26 per share, versus $1.97 per share in 2010. Furthermore, analysts expect earnings to continue growing, from about $3.90 per share in 2012 to around $4.53 per share in 2013.
3) Halliburton shares are trading well below the average analyst target price, which is about $51 per share. Based on the current share price of just $35, this stock could provide gains of about 45% sometime in the next 12 months, if analyst targets are met.

National Oilwell Varco, Inc. (NOV) designs, manufactures, and sells equipment and components used in the drilling and production of oil and natural gas. This company is benefiting from the worldwide boom in drilling and the increased activity in the Gulf of Mexico, which had been hampered for months after the oil spill. This company reported fourth quarter earnings of $574 million, or $1.35 per fully diluted share.

Schlumberger Limited (SLB) offers project management, technology and other services to the oil and gas industry. This company is seeing strong revenue and profit growth which is likely to continue as oil demand rises around the world. Schlumberger recently reported full-year 2011 revenues of $39.54 billion versus $27.45 billion in 2010. Earnings per share for 2011, came in at $3.66, which shows considerable growth over profits of $2.86 per share for 2010. Other positives include that the company repurchased 9.2 million shares of its common stock in 2011, and on January 19, 2012, the Board of Directors approved a 10% increase in the dividend.

Revenue details
Vaalco Energy chalked up revenue of $67.8 million. The one analyst polled by S&P Capital IQ predicted a top line of $44.6 million on the same basis. GAAP reported sales were 77% higher than the prior-year quarter’s $38.2 million.

Margin details
For the quarter, gross margin was 83.4%, 30 basis points worse than the prior-year quarter. Operating margin was 57.4%, 880 basis points better than the prior-year quarter. Net margin was 12.9%, 1,040 basis points worse than the prior-year quarter.

Looking ahead
Next quarter’s average estimate for revenue is $45.0 million. On the bottom line, the average EPS estimate is $0.16.

Next year’s average estimate for revenue is $203.7 million. The average EPS estimate is $0.83.

Nabors Industries Ltd (NBR): Nabors Industries Ltd. is an oil, natural gas and geothermal drilling contractor operating on land throughout the Americas, the Middle East, the Far East, and Africa. The company also provides many support services for both offshore and onshore oil drilling and for well-servicing operations. The company has a ROA of 0.9% and a ROE of 1.8%. The company is trading with a ROIC of 1.0%. The stock is expected to grow at 17.33 % over the next 5 years. The company is expected to earn $2.76 per share next year. The company is valued at $36.5 using DEM. The company has a GY2PE of 1.98. NBR is currently trading at $22.00, raising $3 or 16% this year.

Denbury Resources Inc (DNR): Denbury Resources Inc. engages in the acquisition, exploitation, drilling and extraction of oil and natural gas properties in the Gulf Coast region located in Mississippi, Texas, Louisiana and Alabama. The company has a ROA of 4.1% and a ROE of 8.6%. The company is trading with a ROIC of 5.4%. The stock is expected to grow at 36.10 % over the next 5 years. The company is expected to earn $1.64 per share next year. The company is valued at $31.4 using DEM. The company has a GY2PE of 2.70. DNR is currently trading at $20.72, raising $4.4 or 27% this year.

Revenue details
Oasis Petroleum tallied revenue of $116.9 million. The 17 analysts polled by S&P Capital IQ looked for sales of $116.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter’s $49.1 million.
EPS details
Non-GAAP EPS came in at $0.58. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.30 per share on the same basis. GAAP EPS were -$0.15 for Q4 versus $0.02 per share for the prior-year quarter.
Margin details
For the quarter, gross margin was 79.5%, 210 basis points better than the prior-year quarter. Operating margin was 46.7%, 3,550 basis points better than the prior-year quarter. Net margin was -11.5%, 1,470 basis points worse than the prior-year quarter.

Newfield Exploration Company (NFX) has been range bound between $34 and $78 per share over the past year, and the stock is presently treading water at the bottom of this range. Two of the company’scompetitors in the industry are Cabot Oil & Gas Corporation (COG) andForest Oil Corp. (FST).

Sunoco (SUN) has been range bound between $27 and $47 per share over the past year and the stock is presently trading in the top quartile of the range. It is also coming off the 52-week low of $27.76 per share it reached in October of 2011.

1. Earnings power
Buffett is famous for betting on a sure thing. For that reason, he likes to see companies with demonstrated earnings stability.

2. Return on equity and debt
Return on equity is a great metric for measuring both management’s effectiveness and the strength of a company’s competitive advantage or disadvantage — a classic Buffett consideration. When considering return on equity, it’s important to make sure a company doesn’t have an enormous debt burden, because that will skew your calculations and make the company look much more efficient than it is.

BP generates a fairly large return on equity — 25% over the past year, 17% on average over the past five years — while employing a limited debt-to-equity ratio of 39%.

3. Management
CEO Robert Dudley has been at the job since October 2010. He’s held various other roles over the past few decades at BP and Amoco before BP acquired it.

4. Business
Although there have been major technological advancements in exploration and production over recent years, the industry isn’t particularly susceptible to technological disruption.

EPD has $3.9B gross operating margin for the year ended Dec. 31, 2011. Approximately 70% of this was fee based. NGL pipelines and services accounted for 56% of the $3.9B. Onshore natural gas pipelines and services accounted for 18%. Petrochemical and refined products services accounted for 14%. These included: refined products and petrochemical pipelines, butane isomerization facilities, octane enhancement and high purity isobutylene facilities, and marine terminals and transportation.. Onshore crude oil pipelines and services accounted for 6%. Offshore pipelines and services accounted for 6%.

For the full year
Liquids, you see, are keeping Devon afloat. The company’s sales of oil, gas, and natural gas liquids increased 14% in 2011, but liquids accounted for a whopping 60% of total upstream revenues. As a result, Devon’s full-year report was full of good news.
Net earnings for 2011 squeaked out an improvement over last year, coming in at $4.7 billion compared with $4.6 billion in 2010. The company generated a substantial increase in cash flow compared with last year, growing 23% to $6.5 billion. Annual revenue was also up, increasing 15% to $11.5 billion.

EOG Resources, Inc. (EOG)
EOG Resources, is engaged in the development, production, and exploration of natural gas and oil. With the current market price at $106, EOG Resources, Inc. has Return on Assets of 0.81% and a Return on Equity of 1.59%. The company’s last 5 years average of the minimum forward price-to-earnings multiple is 29.08, whereas its average price-to-earnings multiple is 44.08. EOG Resources has shown an increase of 7.5% in 2012.

Devon Energy Corporation (DVN)
Devon Energy Corporation has its business primarily in the development, production and exploration of natural oil and gas. At its market price of $66, I would recommend buying Devon at its current levels. My recommendation is based on my view that the oil and gas sector will be performing at its best levels in early 2013. In my opinion, lighter restrictions and regulations on the oil sector, would enable the companies of the sector to perform much better from the current levels.

Exxon-Mobil produced a 6% rise in fourth quarter earnings per share from the same period in 2010 and a 35% gain on a year over year basis. Exxon’s gain, like Chevron and Conoco, came on lower production and improvements on downstream pricing and margins. The company’s full year production was up by 1% over 2011 and is expected to continue into 2012.

Chevron is currently trading around $102 in a very volatile market. The stock has been trading sideways all year and will probably continue. The fourth quarter report listed a decline in revenue for the quarter but a 41% gain in earnings for the full year. Revenue was up about 15% for the full year on higher prices for crude oil. A combination of favorable commodity pricing and increases in refining margins helped this stock as well. This is a trend that should be seen across the industry and into 2012.

Here’s how the stats break down:
Over the past five years, gross margin peaked at 70.4% and averaged 64.1%. Operating margin peaked at 50.0% and averaged 42.7%. Net margin peaked at 28.9% and averaged 25.8%.
TTM gross margin is 48.4%, 1,570 basis points worse than the five-year average. TTM operating margin is 48.2%, 550 basis points better than the five-year average. TTM net margin is 28.3%, 250 basis points better than the five-year average.

Boardwalk Pipeline Partners (BWP) is a limited partnership with interests in over 14,000 miles of pipeline that span from Texas into Ohio. Its pipeline and 11 storage facilities help this stock generate a steady stream of revenue that has allowed it to increase its dividend each quarter over the last year. It currently pays out at $0.53 per share and provides a yield near 8%. I think this is a safe buy but it lacks the explosive growth potential of the others. Its stock has risen $5 per share over three years from $22 to $27 and it is a high yielding dividend stock, but Nustar GP Holdings might be better for investors looking for steep gains rather than something safe and steady.

Nustar Energy (NS) is a master limited partnership that spun off from Valero Energy (VLO) and now owns most of Valero’s pipeline network and storage facilities. A series of acquisitions over the year that include a major grab from Citgo in 2008 of some refineries and asphalt terminals has allowed Nustar Energy to take a place among the largest independent liquids storage operators in the world. Nustar’s profits have remained consistent over the past three years, with an average of $229 million per year.

EOG Resources (EOG): EOG Resources, Inc. and its subsidiaries engage in the exploration, development, production and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom and the People's Republic of China. The Company has a Return on Assets (ROA) of 0.81% and a Return on Equity (ROE) of 1.59%. The company is trading with a Return on Invested Capital (ROIC) of 1.14%. The company is trading at 27.22 times current earnings multiple. The average of the minimum forward price to earnings multiples over the last 5 years for the company is 29.08 and the average price to earnings multiples in the same period is 44.08.The Stock is expected to grow at 54.11% over the next 5 years. The company is valued at $434.7 using the minimum earnings multiples and $658.9 using the average earnings multiples over the last 5 years. EOG is currently trading at $105.90, raising $7.39 or 7.5% this year.

4 reasons RIG is still a good buy at $47 a share:

The company is selling at less than 8 times operating cash flow and yields almost 7% in dividends currently.
The median analysts' price target on RIG is now $60 which is almost 30% above current prices.
Even after the recent pop, the stock still sells near the bottom of its five year valuation range based on P/B, P/S, and P/CF.
The stock is gaining strength and just crossed its 50 day moving average (see chart).

The news was a disappointment to oil bulls who were pinning their hopes on a full-on embargo, which would have likely led to supply bottlenecks, with various Asian countries also under pressure to find alternative sources of oil.
Easing concerns over Nigerian oil supply was also keeping a lid on prices, as a leading representative of Nigerian unions said that talks with President Goodluck Jonathan over the removal of fuel subsidies were going well. Petrol prices have skyrocketed since their removal, spurring strikes that threatened to seriously hamper oil production in this top oil-exporting region of Africa.
Demand concerns were also stifling oil prices, with the Organization for Economic Cooperation and Development saying the previous day that economic conditions in most major economies continued to worsen in November. The data also pointed to a likely slowdown in economic activity in Brazil, India and Europe during the first half of 2012. However, the U.S., Japan, Russia and potentially China was likely to suffer the least.

Energy stocks that could benefit most from a real setback for the Keystone Pipeline project would include U.S. Bakken Shale as well as alternative energy plays, as less U.S. imports of Canadian oil essentially could lead to a better guarantee of demand for their products, say analysts. Importantly, Bakken Shale producers would also benefit from the additional support of the U.S. benchmark WTI price — factoring in the long-term potential reduction of supplies from Canada. Shale names included in this category are Hess(HES_), Continental Resources(CLR_) and Whiting Petroleum(WLL_), according to managers.

Energy stocks that could benefit most from a real setback for the Keystone Pipeline project would include U.S. Bakken Shale as well as alternative energy plays, as less U.S. imports of Canadian oil essentially could lead to a better guarantee of demand for their products, say analysts. Importantly, Bakken Shale producers would also benefit from the additional support of the U.S. benchmark WTI price — factoring in the long-term potential reduction of supplies from Canada. Shale names included in this category are Hess(HES_), Continental Resources(CLR_) and Whiting Petroleum(WLL_), according to managers.

Should You Invest In Sandridge And Other Mississippian Lime Players?
So, is the Mississippian the “New Bakken?” Perhaps not, but it does seem to be a very profitable for companies such as SandRidge which were in early. Some Seeking Alpha authors have written about a massive price decline in oil. Others are bullish and see an imminent rise in oil’s price. If you are persuaded by the bulls, now may be a good time to invest. If you like the bears argument, wait until oil declines and then maybe consider investing in these companies.
In any case, with large international oil companies such as Repsol (REPYY.PK) initiating joint shale/carbonate ventures, the migration to horizontal fracking seems well entrenched going forward.

GMX Resources, Inc (GMXR) - GMXR is an energy and gas company with oil shale operations in ND and MO and natural gas operations in TX with a market capitalization of $68.55M and a yield of 2.31. On December 9th, 2011, GMXR declared a cash dividend of $.578125 per share for holders of record on their 9.25% Series B Cumulative Preferred Stock for period ending Dec 30, 2011. This company, while a dividend payer, is highly leveraged with an operating income of only $1.9 million as of the end of 3Q of 2011 with their oil operation not seeing much of a profit at all.